Jockeying Over Investment
Heats Up in 'New' Europe

As They Face Rising Costs,
EU's New Entrants Debate
How to Attract Businesses

By

Dan Bilefsky Staff Reporter of THE WALL STREET JOURNAL

Updated April 30, 2004 12:01 a.m. ET

BRUSSELS -- The Czech Republic tried everything to persuade Hyundai Motor Co. to choose a location northwest of Prague for a new &euro;700 million ($828 million) plant, even offering the South Korean company nearly 500 acres of prime industrial land for &euro;7. But after two years of frantic lobbying, Hyundai opted last month for Slovakia. Czech wages, once a selling point, had risen too high.

Some of the largely former communist states entering the European Union Saturday are beginning to feel the global...